How to Deduct Tithing on Your Taxes

Robert D Flach for Main Street writes: ou can deduct as a charitable contribution on Schedule A cash or property given to a qualified tax-exempt organization "created or organized in the United States or any possession under the laws of the United States or any state or possession." Yet in order to claim a deduction you must have a hard-copy receipt for every single dollar you give to a church or charity.

You will not be allowed a deduction unless you maintain a record of the contribution. The record must be in the form of -

an actual cancelled check,

a bank record (i.e. a copy of the front of the check included on your monthly bank statement),

an entry on a bank or credit card statement indicating a credit or debit card charge, or

a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution.

If you give to the United Way or other charity via payroll deduction the IRS has said, "a pay stub, Form W-2, or other employer furnished document that sets forth the amount withheld for a payment to a donee organization, along with a pledge card prepared by or at the direction of the donee organization, will be deemed to be a 'written communication from the donee organization' that satisfies the requirements."

You can no longer tell the IRS that you put a five or ten dollar bill in the collection plate each week. You must actually write a check to the church for the $5.00 or $10.00 each week, or take advantage of the church's "envelope" system, which will provide you with a written receipt at the end of the year.

The law does not say that all contributions of more than $50.00 or more than $100.00 must be documented. It says that all cash contributions must be documented. So if you give the DAV a dollar for a poppy, and you want to deduct it, you must get a receipt!

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